UK Accounting Glossary
A high-tech stock is a publicly-traded stock of companies in the technology and electronics sectors.
High-tech stock corporations are typically involved in developing and producing computer technology, semiconductor and silicon chip production, as well as new media technology, such as Internet-related equipment. Other areas of high-tech stock companies’ association may include developing cutting edge electronics and biochemical technology. Because they are innovation-driven, high-tech stock firms operate in a highly competitive environment. This aspect of the industry greatly affects high-tech stock stability. Although many high-tech stock issues are classified as growth stocks, the risk associated with investing in high-tech stock companies is just as prominent. Furthermore, due to their aggressive nature and above-average return potential, high-tech stock companies rarely pay dividends.
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This glossary post was last updated: 9th February 2020.